No vertical limits for highrises, rules only advisory

Mumbai: There are no vertical limits for the city. Restrictions imposed on highrise activity by the Union environment ministry aresettobe relaxed. 

    In April last year, the environment ministry issued guidelines linking the height of the building with the width of a road anditsdistancetothe nearestfirestation. 
    While the guidelines were earlier mandatory, sources said the environment ministry decided to render them "advisory" following objection by thestate. 
    The ministry has earlier arguedthathighrisesin congested areas putthelifeof itsoccupants at risk during emergencies. Going by the guidelines, a structure higher than 60 m (20 floors) was permitted only if the width of the roadin frontof itwas 30 m or more. Also, its distance from the nearest fire station had to be 2 km or less. A 45-60m structure (15-19 floors) was allowed on 24-m-wide roads and its distance from the nearest fire station had tobewithin 5km. 
    Arguing that the norms would bring construction in Mumbaito a standstill,chief minister Prithviraj Chavan had sought relaxation in provisions.Hehad saidin Mumbai,wherelandwas scarce, redevelopment of dilapidatedbuildings andslumscould only beundertaken vertically. 
    After Chavan met Prime Minister Manmohan Singh, the latter constituted a committee ledby planning commission member Dr K Kasturirangan to lookintotheissue.The panelis yet tosubmititsfinal report,butthe ministry has indicated that the normswill notbe mandatory. 
    An announcement may be made during Union environment minister Jayanti Natarajan's visit to city on April 2. The state will alsoflagtheissueof moratorium on development activities in Ratnagiri and Sindhudurg. HigherFSI for Mhada layouts T he state will increase FSI for redevelopment of 5,000 societies on Mhada plots. The FSI on gross plot area will rise from 2.5 to 3.Retaining a condition, which requires a private builder to share surplus built-up area with Mhada in the 33:67 ratio, the state will link the developers' incentive to ready reckoner rates.

Ready for third innings as PM? Too early to say: Singh ‘Will Complete Term & Push Key Reforms’

On Board PM's Special Aircraft: Prime Minister Manmohan Singh on Thursday refrained from spelling out whether he would serve a fresh term if the Congress leadership nominated him for the top job for a third time. 
    "These are all hypothetical issues. We will cross the bridge when we reach there," Singh told reporters while on his way back from Durban in South Africa after attending the BRICS summit. 
    He was responding to a question on whether he would agree to another innings as prime minister if asked by Congress president Sonia Gandhi and the party. 
    Singh's comment comes amid intense speculation over whether the Congress will declare its choice for prime minister before the 2014 Lok Sabha elections. 
Chinese projects on river OK: PM P M Manmohan Singh has said Chinese projects on the Brahmaputra are not hindering the water flow to India, and China's new President Xi Jinping is ready to scrutinize such schemes in the Tibetan Autonomous Region. This allays fears that China is planning to dam the river. P 15 PM: Won't let coalition compulsions hit reforms 
    Congress vice-president Rahul Gandhi, who should have been the natural choice, is seen as reluctant, although sources say he has denied having recently said that he is averse to being the PM. This was reiterated by Congress general secretary Digvijay Singh. 
    Given the backdrop, Singh's careful response to the question on the prospect of an extended tenure can potentially be interpreted to mean that he may not flinch from shouldering the responsibility if persuaded to do so by the Congress leadership. Singh also avoided a direct reply when asked whether he, having been PM for close to a decade and after a long career of public service, had the drive, energy and motivation to contribute more to public life. "I have tried my best to serve the country with all sincerity and all dedication. Whether I have succeeded or not is for the people of India to decide," he said. 
    The questioner had given the example of other world leaders who went on to accomplish a lot after they turned 80. Singh, who looked confident and relaxed, also asserted that his government would not just complete its term but also push through key reforms, its vulnerability because of the pullout of the DMK and the Samajwadi Party's increasingly aggressive posture notwithstanding—the seeming nonchalance perhaps stemming from the ability of Congress managers to find numbers to offset break-ups. 
    Asked if the SP, whose 22 members in the Lok Sabha are critical for the government, could withdraw support later this year, Singh said, "Well, obviously, coalitions raise issues that sometimes give the impression that these arrangements are not very stable arrangements. I cannot deny that such possibilities don't exist. But I am confident that our government will complete five years and the next Lok Sabha election will be held on schedule (in 2014)." 
    Singh disputed the assessment that the exit of the Trinamool and the DMK had showed the Congress could not hold on to allies, suggesting that the two constituents had to go because the demands they made could be accepted only at a cost to the reforms process and governance. "I don't share the view. I think that alliances do have compulsions which have to be taken into account. (But) we will not allow such compulsions to derail reforms or to create a situation that will compromise the essential task of governing a vast country like ours," he said. 
    The PM struck an assured note when asked if the government had lost its appetite to implement reforms, although he acknowledged uncertainties on that score. "It is not a once-for-all reforms set up that we are seeking by the way of reforms. Reforms certainly have to take into account the fact that we don't have the majority to get Parliament to approve some of our reforms proposals. So we are certainly dependent on the goodwill of some of our allies. I would be the last one to deny that there are uncertainties. But even then, we are confident that on reforms that matter, and that are going to yield results in the next few months, we will be able to push them," he said. 
    Singh agreed that the current account deficit, now standing at 6.7% of GDP, was a cause for concern. "The current account deficit does worry me. It is our expectation that we will be able to finance it, though in the medium term, we must seek to bring the current account deficit to a more acceptable limit, which I believe in our country would be about 3% of GDP," he said. 
PM parries queries on Italian marines 
On Board PM's Special Aircraft: Prime Minister Manmohan Singh refused to answer questions on the Italian marines accused of killing two Indian fishermen, saying the matter was sub-judice. "This is now a story which is part of the judicial process... It would be much too presumptuous on my part to comment on an issue that is sub-judice," he said. TNN

    These are 
    all hypothetical issues. We will cross the bridge when we reach there 
—MANMOHAN SINGH ON WHETHER HE WOULD SERVE A THIRD TERM IF ASKED BY PARTY

DC Holdings chairman’s properties attached

Hyderabad: On a day of high drama and swift developments, debt-ridden Deccan Chronicle Holdings Ltd on Thursday held its much-delayed annual general meeting (AGM) without two of its main promoters. The meeting was held even as the Debt Recovery Tribunal in Hyderabad attached the personal properties of DCHL chairman T Venkatram Reddy and  his brother and vice -chairman T Vinayak Ravi Reddy on a petition filed by Axis Bank for the recovery of Rs 427 crore.      This was amid the buzz that a Chandigarh police team had landed in Hyderabad to arrest the company's promoters and some ex-directors in a cheque bounce case filed by Religare Finvest, one of DCHL lenders.      The AGM was, in a major departure from the past, held amid tight security at DCHL's printing press at Kondapur in Cyberabad. DCHL admits to losses of 1,040cr  Hyderabad: Deccan Chronicle Holdings Ltd chairman T Venkatram Reddy and his brother and vice-chairman T Vinayak Ravi Reddy did not attend Thursday's AGM, citing the sudden ill health of their mother. That left DCHL vicechairman and promoter P K Iyer to face the wrath of agitated shareholders.      Shareholders, who attended the AGM, said the hastily conducted meet lasted barely 30 minutes and was wrapped up without even the chairman's speech being read out. They also pointed out that the security was so tight that the identity of each shareholder was verified before he/she was let in. "When the meeting began, Iyer announced that the other two promoters were on their way to the AGM when they got the news of their mother's ill health and had to rush back home. He too ran through all the resolutions quickly and left in a hurry," said shareholder Shantilal Shah, who made it on time only because he had done a recce of the venue three days ago. To allay fears of anxious investors, Iyer said the company was bringing out its paper and paying salaries to its staff, Shah added.      Another worried shareholder, Ramesh Manguluri, said Iyer had evaded all their questions. "When I asked the management its plan to repay the Rs 828 crore interest on debt by March 31, 2013, I did not get any answer," Manguluri said, pointing out that he also sought the financial details of Deccan Chargers but failed to get a reply.      Meanwhile, in its 2011-12 annual report, DCHL admitted its reserves and surpluses for the extended fiscal ended September 30, 2012, had eroded to negative (-Rs 31.78 crore) as against Rs 1,231 crore in the previous fiscal due to restructuring of operations and reinstatement of assets and liabilities. Its cash and bank balances stood at Rs 15.87 crore as of September 2012 as against Rs 703.79 crore in the previous fiscal while current liabilities and provisions as of September 2012 stood at Rs 4,042 crore as against Rs 559.67 crore the previous year.      The company also admitted that it had witnessed a mismatch between revenues and costs in other southern states (apart from AP), pushing it into losses of Rs 1,040.40 crore for fiscal ended September 2012 as against a profit of Rs 162.58 crore in fiscal 2010-11.      In its outlook, the company said it had set in motion a process of consultation with its creditors and had been maintaining cordial relationship with its lenders and workforce and that to mitigate the financial crisis and funds flow issue, the management had decided to demerge the print division of the company and reorganize its debt, subject to various approvals.      Meanwhile, buzz about a Chandigarh police team being in town to arrest the DCHL top brass kept mediapersons on their toes all day, but could not be confirmed. However, Sachindra Nath, Group CEO, Religare Enterprise, confirmed that its arm Religare Finvest had filed a cheque bounce complaint in a Chandigarh court and as the DCHL promoters and directors had failed to appear in the matter, the court had issued non-bailable warrants against them last week.      According to sources familiar with the matter, DCHL had issued four cheques worth Rs 6 crore dated July 1, 2012 and August 1, 2012, in favour of Religare Finvest, but after the cheques bounced the company had filed an FIR and criminal case under Section 138 of the Negotiable Instruments Act.      Following this, a Chandigarh court had issued summons to DCHL directors, including the three promoters — T Venkattram Reddy, T Vinayaka Ravi Reddy and PK Iyer — as well as M Sukumar Reddy, G Kumar, Karthik Iyer Parasuraman, Venkaparamani Suresh and Pendyal Siddhartha.      Meanwhile, DRT Hyderabad's presiding officer K Sai Mohan attached various properties of the DCHL chairman at Road No 12, Banjara Hills, as well as properties of DCHL vice-chairman Vinayak Ravi Reddy at Road No 37, Jubilee Hills. Apart from this, DCHL's 7-acre land at Kollur near Patancheru in Medak district and a house and plot on Road No 14, Banjara Hills, was also attached by DRT.

Tax planning must account for retirement and inheritance

 Over 65% of tax-payers across the country scurry with their last minute tax related investments in the final four months of the year. While, obviously, early tax planning can help you avoid the rush of filing right before the due date, it can also provide a variety of other benefits. 

    Efficient tax planning simply means to start the year knowing what will be tax deductible, identifying what income will be taxable and determining what moves you can make to get the best tax advantages throughout the year. 
Early tax planning helps 
To file right: Early tax planning avoids last-minute rush that can lead to computational errors or overlooked deductions and credits, especially if you do your own taxes at the last minute. 
In avoiding penalties: You can avoid late penalty, as well as an interest charge through early tax planning and attention to deadlines. 
In taking advantage of deductions and credits: Early planning lets you identify tax credits and deductions that you can take advantage of now, but won't have access to in the future. 
In long-term tax planning: 
Changes in your financial life, such as retirement or inheritance, have major tax implications that you can account for if you plan ahead. Estate planning and retirement planning can ensure that you don't lose more of your savings or estate to taxes than you need to. 
In SIPing your way to taxplanning: Knowing your tax liability can efficiently help you participate in instruments like ELSS, RGESS, Ulips and PPF, spread over the entire 12 months, rather than struggle for funds in the last 3-4 months. For one it helps your cash balances, and at the same time it also gives fantastic rupee cost averaging opportunity. 
In planning your losses: You should make the effort to know more about the rules to set-off your short-term and long term capital losses and you would be pleasantly surprised how losses can save you on taxes. In planning your loans: Plan when you can take that plunge into taking a home loan (with new sops thrown in - it just might make sense for new home buyers). Time the loan in such a way that you get the maximum benefit from the interest deductions. 
In changing your entity structure: Create the optimal entity structure for your family and yourself through HUF and trusts to maximize your tax benefits and legal asset protection benefits. 
How to get started on next year's tax planning 
tCheck and review last year's return. This is to ensure you won't miss out on any deductions and credits in the current year. 
tGet organized by setting up a simple file system, and separating your information by type, income, deductions, credits and so on. 
tKeep track of all your expenses and retain receipts even though you don't necessarily have to submit them with your return. 
tKeep more of your year-end pay cheques by equitably distributing the deductions across the 12 months. 
tMake your tax payments on time if you are self-employed and required to pay tax instalments during the year. This way you'll also avoid interest and penalties. 
tPerform a check-up on your financial health by reviewing your overall financial plan. It's easier to measure your results against objectives when every aspect of your financial life is laid out before you. 
tConsider taking help of a professional tax preparer. It does cost some money but consider the amount you can save in taxes and anxiety. And in case of a dispute, your preparer can represent you at the Income Tax department. 
tOne tax-saving strategy you shouldn't ever overlook: Be sure to talk to your professional adviser to ensure you take full advantage of every tax-reducing opportunity available to you. 
    Well, maybe it's a little too late to practise early tax preparation this fiscal. But try it out next year and you will certainly keep more of what you earn. 
    The writer is head 
    of wealth advisory services 
    at a south-based financial 
    services house

Rural folk driving own economy

Mumbai: Indian villages are powering their own economy, but contrary to conventional belief, it's not government largesses which are the drivers, but their own self-sustaining models. Growth at the bottom of the pyramid is at unprecedented level, and the transformation is stark. 

    The factors driving this transformation are dramatic improvements in rural roads, electrification, cell phones and water supply which are raising wages and increasing job opportunities for thousands living in villages. This, in turn, is fuelling demand for consumer goods, and for those companies which have a strong rural push. 
    Case studies from fieldtrips and research undertaken by Credit Suisse show that the growth in productivity is becoming sustainable as jobs in manufacturing drive services jobs in transportation and trade, enabled by mobile phones and roads. 
    Research over the last couple of years by independent sources has confirmed that use of cell phones benefited a diverse set of people—from fishermen to sari weavers. Most of the studies focused on price discovery in agriculture or on skilled artisans improving customer service or price realizations. 
    D K Joshi, chief economist at Crisil, says, "Overall, there has been a definite improvement in the rural economy. Villages have become self sustaining, providing a big push in manufacturing jobs. Roads are increasing demand for vehicles, while cell phones trigger more goods and services. However, a lot more is required; the success stories need to be replicated in a number of areas." 
CHANGING FACE OF INDIAN VILLAGES 
    Village textile stores now stock pre-stitched branded clothing 
    The second hottest-selling item in a rural grocery store is packaged 
gulab jamun instant mix 
    Rural areas have a higher penetration of direct-to-home 
devices for receiving TV content Two in every five mobile subscribers are now rural 
40% of demand for cement comes from rural housing 
Most surprisingly, poultry farming created more days of work per person than the jobs guarantee programme (between 2005 and 2010) Rising wages, land prices spur rural purchasing power 
Mumbai: The face of the rural Indian economy is changing for the better. Access to roads is helping landless people raise poultry (chicken) within limited floor space and sell their produce in nearby towns. In fact, poultry farming created 3.8 million jobs between 2005 and 2010: the 950 million person days of work thus created every year is the same as that by the government's NREGA in the same period. 
    Road access significantly improves land prices, labour mobility, wages and alternative employment avenues, says a study by Credit Suisse. 
    For example, production of mannequins has moved from Ulhasnagar outside Mumbai to villages in Rajasthan, while other examples like pottery (Orissa), saris (West Bengal), furniture (Himachal Pradesh), are all potential jobs difficult to carry out in remote villages previously, but are now made easy by road connectivity. 
    The study found a strong correlation between per-capita output and road networks (represented by vehicle penetration) both within and across states. 
    Since about 80% of the country's rural households own less than two acres of land, they are therefore wage dependent. Analysts point out that this wage growth is largely productivity-driven (and therefore sustainable to a large extent), providing a floor to India's cratering economic growth, and even in the absence of major infrastructure projects taking off, there are substantial changes in basic infrastructure that are taking place in areas other than big cities. 
    Over the last five years, rural wages have increased at an unprecedented 20% CAGR, with land prices appreciating sharply as well. Both have ended up putting more money in the hands of people, and generating purchasing power, experts say. Fast-moving consumer goods companies are enthused with the strong rural demand as it augments their sales. 
    In some cases like Emami with products, offered in 30 lakh rural outlets, including Navratna Oil, Fair and Handsome cream, Zandu Balm, BoroPlus cream, has nearly 50% of sales in some categories coming from rural markets.
    Says N Krishna Mohan, CEO, sales, supply chain & human capital, "We are going to focus on specific brands/stock keeping units and increased outlet coverage in villages/ towns in certain states where we have a strong direct coverage. In other markets, we would be working on ensuring that at least 80% of the villages with a population of 10,000 and above are put under the coverage map by the end of the next fiscal". 
    Another company, ITC, which offers Sunfeast biscuits, Vivel soaps, Superia soaps and shampoos, has been able to tap the rural segment through its e-choupal network. Says an ITC executive: "The divide between urban and rural markets has narrowed down and hence we have expanded our basket of offerings in rural India. Given the vast reach and penetration, ITC has devised mobility solutions for monitoring progress and instant information dissemination". 
    Sales of white goods like refrigerators, and consumer durables like LCD televisions have surged in villages. 
    Private banks have also realized that villages can be the next engine of growth. This is because the share of saving deposit for non-urban branches is high (42-50%) as against the 15-30% in metro/urban branches.

D-St Sees No Threat to UPA, Feels FIIs will Keep the Faith

A majority of broking firms and fund managers in an ET survey feel there will be no snap poll and that markets will continue to surge ahead in 2013

Dalal Street thrives on optimism. Despite a choppy marketandpoliticaluncertainty,topbrokersandfundmanagers believe that foreign portfolio managers will remain unperturbed and the market will find a way to tide over the rough times. The UPA government will last its full term in office and push through reforms in pension and insurance whileforeigninvestors—eggedonbycheapmoneybackhome — will continue purchasing domestic shares and push stocks to a new high in 2013, an ET poll of 20 fund managers and brokers showed. 

Poll participants like Axis Direct, HDFC Securities, MacquarieCapital,MotilalOswal,KotakSecurities,LICNomura MutualFundandUTIAssetManagementCompany–ruleout theprobabilityof snappollsasthemajorpoliticalformations will find it difficult to garner numbers enabling them to form agovernment."Thepossibilityof earlyelectionsisunlikelyas both Congress and BJP are not ready," said Nobutaka Kitajima, CIO-Equity, LIC Nomura MF. "Elections will be later than the fourth quarter of CY2013, but very unlikely to be sooner." A majority also expected economic reforms to continue apace despite the SP and BSP being opposed to insurance and pension reforms. "The BJP is not averse to supporting the pending insurance and pension Bills, and I am hopeful Parliament can pass the Constitution Amendment Bill that will pave the way for the rollout of a unified Goods and Services Tax or GST," said a participant who requested anonymity as he was not authorised to speak to the media. 
Whilethegovernmentwants49%foreigndirect investment limit for pension and insurance,theBJPispitchingfora26%limit.However, participants said both Bills were unlikely to be taken up during the second leg of the Budget session, which commences after a month. A majority of those polled also expectFIIflowstocontinueapacewiththeUS Fed keeping interest rates low and buying $85 billion in bonds a month to support the country's fragile economic recovery. Japan's stimulus package to reflate its economy will also ensure the cheap global liquidity tap remains open, they added. These flows along with improved GDP growth will play a big part in pushing stock markets to new highs by the end of this year. The poll pegs the average Sensex target for the year-end at a record 21,744, 16% above Thursday's closing. The record so far for the Sensex stands at 21,206.77, which it hit in January 2008. Though GDP growth in FY14 is largely expected to be higher than the forecast 5.5% for the current fiscal year, most of those polled do not expect growth to touch the 6.7% forecast in the Economic Survey FY14. Fifty percent polled expect GDP growth for FY14 to be between 5.5%and6%whileonly35%expectittobe6-6.5%,orcloserto the finance ministry's target. 
"The government's FY14 growth target looks achievable as it has at its disposal an additional . 97,000 crore of unspent plan expense from the second-half FY13," said Nilesh Shah, director, Axis Direct. However, while all this will bode well for FIIs, theoutlookfortheretailinvestorstilllooksgrimbecauseof the poorperformanceof smallandmidcapshares.Seventypercent of those polled don't expect retail investors who fled following the recent midcap carnage to return to the markets this year. "Retailinvestorshurtbythecrashinsmall-andmid-capstocks areunlikelytoreturntothemarketsthisyearastheyhaveseen thevalueof theirportfoliosdeclineby25-30%overthepastcoupleof years,"saidDineshThakkar,CMD,AngelBroking.

RBI DISMISSES MONEY-LAUNDERING CHARGES

Banks to Cover Whistleblowers ICICI & HDFC Banks offer immunity to staff who expose wrongdoings Chief executives at ICICI Bank and HDFC Bank have offered im munity to staff who expose unfair practices and violation of guide lines by colleagues, even as the Re serve Bank of India (RBI) has dis missed money-laundering allegations made about these banks by a sting operation. Chanda Kochhar of ICICI Bank Aditya Puri of HDFC Bank, and Shikha Sharma of Axis Bank have conveyed their displeasure at some of their employees being caught on camera advising clients on avoiding taxes. They have uniformly said there is zero tolerance for such acts.  "The bank lays very strong emphasis on ethical behaviour and has zero-tolerance policy with violation in this regard," Kochhar wrote in an email to ICICI Bank staff. "Any breach in this regard will not be tolerated," she wrote. The message from her competitors Puri and Sharma were similar. An Axis Bank spokesperson said, "The bank maintains highest standards of corporate governance, transparency and ethics in the conduct of its business. It has put in place robust systems and procedures that are fully compliant with extant regulations. The bank has always followed a zero-tolerance policy in regard to the adherence of prescribed rules and regulations in the conduct of its business." Reviews, Audits on at Banks Stung by Cobrapost  The operating staff is fully conversant with the value system adopted and the high standards set by the bank and these standards are reiterated at regular intervals to the staff at all levels," Axis Bank added.  The top three private sector lenders are dousing the fire lit by a sting operation by Cobrapost.com, an online news provider, that showed staff at these banks offering potential customers advice on tax evasion, money laundering and conversion of black money into well-accounted wealth. The Cobrapost.com website has scores of clips showing bank executives eagerly compromising on established practices, though no transaction took place. "There is no scam (that) has happened... as no transaction has taken place," said KC Chakrabarty, deputy governor at the Reserve Bank.  Government agencies and RBI have begun investigating these banks for allegedly promoting money laundering. Based on the preliminary enquiry, ICICI Bank informed its employees that no actual transactions were found to have taken place in respect of the specific instances reported in the sting operation by Cobrapost.com.  A review of the relevant systems and processes is being undertaken. An audit of some of the branches and the corresponding back-end processes is also being undertaken.  HDFC Bank's Puri, who appointed consultant Deloitte and law firm Amarchand Mangaldas to plug the gaps, if any, encouraged staff to focus on business and not let the event consume their energy.  Nearly 40 executives from these banks face an uncertain future as the probe is underway. Most of the recordings do not show any transaction done in violation of rules, but the loose talk they indulged in may cost their jobs. The ongoing investigation by the regulator and the hype over the incident could lead to banks losing some lucrative business as regulations may be tightened. In fact, fee-generating businesses such as private wealth management could be under lens and may have to be discontinued if the regulator spots violations.  "The Reserve Bank has also undertaken a thematic study in respect of banks that are active in selling gold coins and wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loopholes, if any," the central bank said on Monday.

Bees Saal Baad: SC gives Sanjay 5 yrs, Yakub death, spares 10 the gallows, puts Pak in dock Life Term For 33 In 1993 Mumbai Blasts Case

NewDelhi:Two decades after serial blasts maimed Mumbai, the Supreme Court on Thursday commuted to life term the death sentence of 10 persons convicted by the trial court for planting bombs as part of the first-ever coordinated terror attack that left 257 dead and 713 injured. The court upheld the death penalty for Yakub Abdul Razak Memon, the only one among the masterminds of the horrific terrorist crime—one of the deadliest internationally and the first one involving the use of RDX—who could be tried. 

    Pronouncing its final verdict in the terrorist atrocity, plotted as an extension of the communal violence that broke out in Mumbai in the wake of the Babri demolition in December 1992, the SC blamed Pakistan for encouraging and helping the terrorists. 
    In a unprecedentedly long judgment running into over 2,000 pages, a bench of Justices P Sathasivam and B S Chauhan said that while Yakub participated in the conspiracy with Tiger Memon and Dawood Ibrahim and deserved no leniency, the other 10, though responsible for placing explosive laden vehicles at several places, needed to be evaluated on a different plane as they belonged to the lower strata of society and were sucked into the conspiracy to be used as "arrows" by the mastermind "archers". 
    Of another 19 sentenced to life by the trial court, the apex court upheld the punishment for 17. Of the remaining two, the life sentence was reduced to 10 years imprisonment in one case, and to the period already served in the other. 
    Significantly, it allowed appeals of the Maharashtra police and enhanced the sentences of six accused to life term. The six are Uttam S Potdar, Issaq Mohd Hajwane, Sharif Abdul Gafoor, Manoj Kumar Bhanwarlal, Farooq Illiyas Motorwala and Mohd Rafiq Usman. This brought the number of those sentenced to life to 33. The court stressed that they will stay in jail for the rest of their lives. 
    The SC also confirmed the sentence of customs officials and policemen who facilitated the conspirators in return for bribes, and censured the Coast Guard for not being vigilant enough to block the shipments of arms and explosives that were used. Commenting on the enormity of the crime, the judges said, "This was the first-ever terror attack in the world where RDX (Research Department Explosives) was used on a large scale basis after World War II." 
END OF THE 
BEGINNING? 
Mar 12, 1993 | 13 places in then Bombay bombed in the space of 130 minutes; 257 killed, over 700 injured 
July 31, 2007 | Of 123 people tried, TADA court convicts 100; gives death to 12; life to 20, varying terms to remaining 68 
March 21, 2013 | SC confirms capital punishment for Yakub Memon, an organizer; commutes it to life for 10 planters; one passed away in between. Upholds 17 life sentences, reduces two and adds six 
THE CRIME ROLL 
    Yakub Abdul Razak Memon, brother of absconding accused Tiger Memon 
    The 10 planters | Zakir Hussain Shaikh, Abdul Khan, Firoz aka Akram Amani Malik, Mohd Mustaq Tarani, Asgar Yusuf Mukadam, Shahnawaz Qureshi, Mohd Shoeb Mohd Kasam Ghanasar, Abdul Gani Ismail Turk, Parvez Shaikh and Mohd Farooq Mohd Yusuf DIFFERENT YARDSTICK 
Holding that "sentence should directly reflect the role of the accused in the crime", court said Yakub deserved no leniency, while the 10 others were mere "arrows" used by mastermind "archers" 
STAR CROSSED 
    Court upheld conviction of Sanjay Dutt for possessing three AK-56 rifles and ammo which had been delivered at his Bandra residence by Abu Salem and others at the behest of Dawood Ibrahim's brother Anees in 1993 
    It also upheld 5-year sentence to Yusuf Nulwala and ordered release of Samir Hingora, who was sentenced to 9 years in jail TOP COURT RULING'Masterminds leading comfortable lives in Pak' 
    However, there were doubts that the verdict would bring closure to the victims, considering that the masterminds—underworld don Dawood Ibrahim, his brother Anees Ibrahim and Yakub Memon's brother Tiger Memon—have not been brought to justice. By all indications, the three are leading comfortable lives in Pakistan. 
    In fact, the sense that justice had not been done may only be reinforced by what Justices Sathasivam and Chauhan said to justify the use of different approaches towards "mastermind" Yakub on the one hand, and the 10 "pawns" on the other. "The sentence should directly reflect the role of the accused in the crime," the bench said. "These 10 parked explosivesfilled vehicles in the respective destinations. However, if we lift the veil, it is actually the mastermind's strategy, which was executed by the subservient minions... We contemplate that the ends of justice would be served if the death sentence of these 10 appellants be commuted to life imprisonment." 
    On Yakub, the bench said, "A perusal of the above confessions by the co-conspirators would show that the appellant was playing a key role in furtherance of the conspiracy. The evidence… (shows that Yakub) played an active role in the generation and management of funds for achieving the object behind the conspiracy and in subsequent events. 
    "Yakub left for Dubai on 11.03.1993 with an Indian passport and entered Pakistan with a Pakistani passport. Though he was not among the persons who carried the arms and ammunition used for the blast, it was he who stood behind them from starting till the end. 
    "We are satisfied that the prosecution has established all the charges leveled against Yakub and the designated court rightly convicted him." 
    The other 10 given the death sentence were Zakir Hussain Noor Mohd Shaikh, Abdul Khan aka Yakub Khan Akhtar Khan, Firoz aka Akram Amani Malik, Mohd Mustaq Moosa Tarani, Asgar Yusuf Mukadam, Shahnawaz Abdul Kadar Qureshi, Mohd Shoeb Mohd Kasam Ghanasar, Abdul Gani Ismail Turk, Parvez Nazir Ahmed Shaikh and Mohd Farooq Mohd Yusuf. 
    The bench was quick to add that lesser punishment to the co-accused would not be treated as a precedent. It also clarified that life sentence meant the convict has to spend the rest of his life in prison, subject to the pardoning and remission powers of the President or state governor. 
    Immediately after the demolition of the Babri Masjid on December 6, 1992, Tiger Memon and Dawood Ibrahim, then living in Dubai, planned a terror strike in Mumbai. Dawood sent arms and ammunition from abroad and it was received by Tiger Memon, who also sent some of the accused to Dubai and from there to Pakistan for training in the handling of arms and ammunition.

March 12, 1993 Shivaji Park

Liquor, tobacco & gold will cost more in state No Money, Only Promises For Mumbai

Mumbai: Cigarettes and other tobacco products, cheaper IMFL alcohol brands and strong beer are set to get more expensive following finance minister Ajit Pawar's budget for 2013-14, which was announced on Wednesday. Gold, silver, diamonds, precious metals and jewellery made from these items will also be costlier. 

    Pawar sought to do a balancing act between giving relief for rural areas in a drought year while also ensuring there weren't too many additional burdens before 2014, an election year. 
    In Mumbai, landlords and tenants will see stamp duty for more expensive accommodations going up. However, if the security deposit for the flat stays low, the stamp duty can be controlled. 
    Confident of widening the tax net, the state government envisages its tax recoveries to increase from Rs 600 crore last year to Rs 1,050 crore. Tax on cigarettes goes up by 5% and unbranded tobacco by 12.5%. Cheaper IMFL brands will see a whopping 25% excise duty hike, while strong beer will face higher excise of up to 43%. 
    The tax on gold, precious metals and associated jewellery will go up by 0.1%. The tax, said Pawar, is for a year only and the money will be channelled for drought mitigation measures. The state hopes to mop up Rs 175 crore here. Another Rs 150 crore is to be raised by increasing the purchase tax on sugarcane. "Sugarcane factories utilize 70% of irrigation and must pay for drought measures," said Pawar. 
    The cost of cosmetics and shampoos classified as medicines (herbal products) will also go up as the government has levied 12.5% tax on these items. 
    The good news is that the cost of many essentials remains unchanged. These include tea, rice, wheat, pulses and flour, turmeric, tamarind, jaggery, fenugreek, papads, currants and raisins, wet dates, Solapuri blankets and towels. Budget 'spares' middle-class 
Mumbai: The cost of heart implants will go down as VAT has been reduced from 12.5% to 5%. Flavoured and toned milk will be cheaper too, along with stamp papers purchased from government-authorized vendors. Students who have a hobby of collecting stamps, envelopes and first-day covers will now no longer have to pay tax on the philatelic goods. 
    The overall budget at Rs 1.8 lakh crore is Rs 20,000 crore more than last year's Rs 1.6 lakh crore budget. However, there were no big ticket projects. In fact, the outlay for development (Rs 46,938 crore) increased by a paltry Rs 1,938 crore over last year's budget. The economy is expected to grow at 7.1%, according to the State Economic Survey. "The aim is to ensure that the middle class is not unduly burdened with taxes even as drought mitigation measures are taken up," said Pawar. There were no significant new taxes. 
    The rural-centric budget gave Mumbai no more funds, just assurances that ongoing infrastructure projects worth Rs 5,000 crore will be commissioned during the year. There was no mention of the Local Body Tax (LBT), which replaces octroi, either. Chief minister Prithviraj Chavan said 20 municipal corporations had already moved to the LBT and were doing fine. "We have given a grant of 10% at the time of changeover which will be done for the major municipal corporations too," he said. He later reaffirmed that it would be introduced this year by the BMC and other local bodies. 
    With the state facing an unprecedented drought, the budget aimed at drought mitigation measures has set aside Rs 11,500 crore for various longterm water conservation measures. Irrigation has been allotted Rs 8,379 crore (approximately Rs 2,000 crore is expected from the Centre to complete 140 projects that are 90% done). 
Third time lucky for CCTV project? T he state government has set aside Rs 150 crore for installation of CCTV cameras on Mumbai and Pune roads. This is the third consecutive year that allocation has been set aside for the much-delayed Mumbai CCTV project. The government is yet to complete the process of appointment of a contractor. It has also set aside Rs 317 crore for modernization of the police force. TNN

Banks doing all to recover KFA loan: SBI

TALKING TOUGH

Chaudhuri Tells FM Bankers Assessing Airline's Securities That Can Be Auctioned

New Delhi: Finance minister P Chidambaram, at a meeting with the heads of PSU banks and financial institutions on Monday, said rich promoters of sick companies must be made to pay up dues. Although he did not name anyone during the closed-door meeting, he dropped enough hints to signal who he was referring to. 
    Almost immediately, SBI chairman Pratip Chaudhuri responded by saying lenders are taking all steps to recover the loan provided to Vijay Mallya's Kingfisher Airlines. "We are blazing all guns and taking all steps to recovery," Chaudhuri said. The SBI chief said the core group of bankers is assessing the securities that can be sold to quickly put up for auction. 
    Although bankers agreed to recall loans given to Kingfisher several weeks ago, banks are in the process of initiating action. State-run banks that have an exposure of over Rs 7,000 crore are seen to have responded rather slowly to the deterioration of Kingfisher Airline's financial health even as Mallya's lifestyle has seen little change. 
    The FM's green light comes amid signals of rising bad debt in the banking system which, if left unchecked, will impact the health of the banks. The gross stock of NPAs of public sector banks have more than doubled from Rs 71,000 crore at the end of March, 2011, to Rs 1.5 lakh crore on December 31, 2012. Of this, about 172 corporate accounts were NPAs of more than Rs 100 crore each at the end of last December. The amount involved in such cases is of the order of Rs 37,000 crore. 
    Chidambaram made it clear that restructuring cannot be a one-sided affair with only banks taking a hit. "Promoters have to bring in additional money and companies have the duty to pay back loans," he said. Commenting on the same, finance services secretary Rajiv Takru said, "We are trying and banks are also trying to make a distinction between willful defaulters and people who are genuinely stressed and who have genuine problems." 
    Chidambaram said recovery has improved in the past month or two and banks should take more steps to deal with rising NPAs. Terming stalled projects as worrying, the FM said steps were being taken to ensure impediments were removed and credit flow took place. As many as 215 projects with an investment of Rs 7 lakh crore are stalled and banks have disbursed about Rs 54,000 crore loan towards them, he added.

IN STEP WITH FUTURE NEEDS Soon, airport may host 45 million flyers a year

Efforts On To Surpass Current Projection By 5 Million Mumbai: The city airport may soon be able to host 45 million passengers annually, five million more than the current projection.      With the new integrated terminal coming up and the enhancements made to the air side as well, the airport was supposed to cater to 40 million passengers every year by 2014-15.      Now, a multi-party committee set up by the airport is trying to ensure that the facility is able to meet the demands of the ever-increasing passenger traffic and stretch the handling capacity to 45 million passengers or more.      The increased capacity will come as a breather to the airport, which faces saturation in the next three to four years.      With the Navi Mumbai airport project facing delay after delay, growth in passenger numbers in the city would be stalled once the main airport hits a saturation point.      GVK group vice-chairman Sanjay Reddy on Monday said while catering to 40 million passengers was the original plan, efforts were on to expand the capacity.      Speaking on the sidelines of the Routes Asia summit, Reddy said that a committee comprising airport, airlines, Airports Authority of India and Directorate General of Civil Aviation officials had been set up to reduce the runway occupancy time (ROT) of aircraft and thereby facilitate more flight movement.      "We are monitoring every single landing and take-off at the airport," Reddy said.      He said that the ROT has already been reduced from 60 seconds per aircraft to 52 seconds. Re-location of certain taxiways will also help achieve a better ROT.      The airport will also be able to augment the handling capacity if encroachments are removed. According to the plan, one arm of the new integrated terminal extends towards the Mithi river, where the land is encroached upon. While the rest of the terminal would be ready by the last quarter of the year, this arm will be constructed only after the encroachments are removed.      Reddy hinted that the passenger handling capacity may go up further once this arm is functional, but made it clear that the city would need a second airport in five to six years.      "Our worry is not the runway or the terminal. It is the apron where we face a space crunch. Where will the aircraft park? Apron is related to land availability," he said.      Reddy said that the new terminal T2 would be open for operations by the end of the year.

RBI, IRDA probe sting op findings Sale Of Gold, Wealth Management Products By Banks Also Under Scanner

Mumbai: The Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDA) have begun a probe into allegations of irregularities at branches of ICICI Bank, HDFC Bank and Axis Bank involving violation of antimoney laundering norms. Besides scrutinizing records at the head office and branches, RBI is also studying the process employed by banks in selling gold and wealth management products to see whether there are any systemic risks. 

    "The scrutiny has been initiated after an online media firm… alleged money laundering and violation of several provisions of the Reserve Bank of India Regulations, Foreign Exchange Management Act guidelines, Prevention of Money Laundering Act (PMLA), etc," a statement issued by RBI on Monday said. The statement added final reports on all the three banks will be completed by March 31 and "thereafter further course of action as necessary will be initiated". 
    "The media firm had uploaded some videos on the internet relating to thesebanks as well as ICICI Prudential Life Insurance and HDFC Life Insurance," the RBI statement said. IRDA sources said that besides the names of lifeinsurance companies, the videos also name four insurance plans and includes names of the persons selling the products. "IRDA has already asked the CEOs for their comments. They are also trying to ascertain whether the persons are qualified to sell insurance and whether there is any mis-selling of the product," a source said. 
    Bankers say that officials exposed by the sting showed willingness to become accomplices in money laundering largely because of targets to sell life insurance plans. Banks have been finding it tough to sell lifeinsurance following the loss of customer faith in the industry. Although the commission is paid to the bank and not to the employee, private banks set targets and provide incentives to individuals for selling life insurance plans. 
    "While getting term deposits of Rs 10 lakh is not a big deal for a branch, a prospect willing to invest up to Rs10 lakh in a life insurance plan would have enabled the branch manager his entire target," said a bank official. Bankers feel that RBI may take up this issue in a forthcoming meeting with bank chiefs on risk-based supervision next week. 
    Private life insurance companies have been aggressively selling lifeinsurance plans through branches. Branch managers have willy-nilly encouraged relationship managers to use moral suasion. "There have been instances when a bank official calls up a depositor and warns him that a cheque might be returned because of a small shortfall in his account even though he is not bound to make that call. It is at times like this, when the account-holder feels obliged to the banker that the sales pitch is made and the customer feels obliged to buy a policy," said a former banker. TARGETS, SOPS TO BLAME 

•Banks have been finding it tough to sell life insurance following the loss of customer faith in the industry 

•Bankers blame targets to sell life insurance plans for offi cials' willingness to become accomplices in money laundering 

•Private banks provide incentives to employees for selling life insurance plans

State aims for 20k affordable homes in Mhada bldgs

Mumbai: The state government has decided to completely do away with charging premiums for Maharashtra Housing Area Development Authority (Mhada) redevelopment projects in lieu of extra floor space index. Instead, it will take a share of the surplus flats, which are likely to form the corpus of affordable housing in the city. 

    The size of redeveloped flats would be restricted to 300 sq ft for low-income groups, 600 sq ft for middle-income groups and 800 sq-ft for high-income groups. So far, developers offered flats of even 1,000 sq ft in Mhada buildings, but it will reportedly no longer be allowed. 
    Chief minister Prithviraj Chavan said in the legislative assembly on Monday that he had finalized the new policy for Mhada redevelopment and the notification would be issued this week. The new policy will be implanted once the notifications are issued. Chavan was replying to the motion discussing the governor's speech at the beginning of the budget session. 
    The housing authority has 102 layouts and 56 colonies in the city. It has very few vacant plots left for development, but with the change in the Development Control Regulation 33(5), which governs Mhada redevelopment, the state hopes to generate around 20,000 affordable flats in each redeveloped building. 
    Minister of state for housing Sachin Ahir said under the new policy, the government would 
accept only flats in lieu of extra FSI, granted for redevelopment. "Mhada projects get FSI of 2.5-3. The government plans to get about one-third of the additional FSI in the form of flats. This is our only hope to create affordable housing in the city," he said. 
    In 2010, the state stayed the premium policy and has since been working on the new policy.

Pay property tax by June 30 or you’ll be fined 2% of bill amount Charitable Bodies, Elderly Burdened By New Tax System

Mumbai: The municipal body's decision to extend the due date for payment of property tax bill from March 31 to June 30 has come as a temporary relief for citizens. But the fundamental issue of paying bills with retrospective effect from April 2010 and the alleged faulty capital value method of computing the tax still exist. 

    Moreover, now the Brihanmumbai Municipal Corporation (BMC) has decided to impose a penalty of 2% per month on those who do not pay the bills by June 30. 
    Citizens are still unconvinced about the new system. 
    "The extra three months are welcome, but it doesn't solve the core issue of the formula itself, where property tax is computed on the basis of the Ready Reckoner rate, which is faulty, irrational and discriminatory. Residents living on a property in the suburbs end up paying more than those living on a property in south Mumbai," complained advocate Godfrey Pimenta, who lives in Marol. 
    The new property tax system has adversely affected senior citizens, too, who live on pensions. 
    While the New Delhi Municipal Corporation provides concessions on property tax to senior citizens, the BMC does not 
    "With inflation rising every year, it will become very difficult for retired senior citizens to bear the heavy tax burden. As such, they should be granted concessions," said Pimenta. 
    Coleman Pereira, a senior citizen from Pali Village in Bandra (W), said that retired people live on their meagre savings and will face difficulty paying the hefty taxes. 
    "Our pension doesn't increase in accordance to inflation. So, if the rate of inflation has increased by 10%, my earning through pension does not rise from Rs 100 to Rs 110,"explained Pereira, who lives in a cottage in Pali gaothan. 
    "If property tax is computed with the capital value system, it almost doubles for my cottage doubles from Rs 3,572 to Rs 6,000 per year. The BMC has not even inspected my premises. My house has load-bearing walls, but is classified as an RCC construction," he said. 
    Charitable organisations and religious institutions, who are dependent on charity to help orphans, disabled and senior citizens, complained that the new property tax system will burden their resources. 
    St Catherine's Home in Andheri (W) and Holy Cross Church in Kurla have received staggering bills amounting to lakhs. "We have got a bill of Rs 7 lakh with retrospective effect from April 2010. Catholic charitable trusts and institutions never default in paying government bills. We run our churches and institutions on donations; they are not profitable trusts. We strongly protest against the new property tax bill sent by the L ward office in Kurla,"said Father Pascal from Holy Cross Church. 
TAXING TIMES FOR MUMBAI What is the new system 
    Earlier, property tax was computed based on its rateable value, that is the rent paid by tenants. Also, the rents for old buildings in south Mumbai were frozen at amounts that existed in the 1940s. The BMC could not increase this amount and hence, south Mumbai residents paid far less property tax than those in the suburbs. While a Marol resident who lives in a 300 sqft flat with a valuation of 1.14 crore paid 13,977 as property tax annually, the owner of a 10,000 sqft flat in Colaba with a valuation of 12.74 crore paid only 5,200 a year. To bring parity, the BMC devised the capital value-based system to calculate property tax. Under this new system, the tax is calculated based on the property's current market value taking into account five factors: price of the property, the area, age of the building, type of building (commercial or residential) and type of 
    construction 
    (concrete or 
    wooden) 
Why citizens are upset 
    Mumbaikars are calling the new capital value method of computing property tax unfair and discriminatory. The base capital value of a property is linked to the Ready Reckoner (RR) rate decided by the state town planning department, which stipulates prices for specific areas such as residential, office, shop or commercial and industrial. In an RR, 400-500 plots are clubbed and given a uniform rate. The price of a property is dependent on factors such as type of construction, facilities, and surroundings such as proximity to airport. But residents complain that the ground reality that affect a property's price are not taken into consideration in the RR. The issue is being contested in an Aurangabad court. Citizens are also upset about the disparity in the tax levied on flats in the western 
    suburbs and the island city. 
    Another concern is the receipt of 
    bills with retrosp-ective effect 
    from April 2010. Senior citizens, 
    charitable organisations and 
    gaothans also feel burdened 1 in every 9 bills has an error 
Mumbai: Of the 2.70 lakh property tax bills the municipal corporation has issued since February, it has received complaints about 30,000 bills. This means, one in every nine bills issued has an error. 
    "The complaints that we are receiving are about the incorrect area of a flat, nature of use or tenancy-related issues. We are rectifying them and are also undertaking spot surveys, if needed," said a civic official. 
    The municipal cody has set up helpdesks at all 24 ward offices, where complaints regarding property tax bills will be addressed till the owner is satisfied. 
    According to sources in the civic body, the BMC has relied on old data for calculating the property tax based on the capital value system. The BMC had not carried out a fresh survey of properties before making the switch for tax calculation from rateable value — it is computed on the basis of the rent a property can get — to capital value — it is based on the market value of the property. 
    Mumbaikars said that as a property may have undergone several changes, additions or alterations over the years and in the absence of the correct data of the property, the BMC cannot send the bills based on the old records. 
    The huge number of complaints show that there are definitely discrepancies in the data with the BMC and the ground reality. 
    "How can the BMC charge us tax and not have the data on what they are charging us for? The civic body took three years to implement the new system, it should have taken some more time and done its homework better before sending us bills haphazardly," said Chembur resident Nitin Patel. 
    Civic officials claimed there were plans to conduct a fresh survey of properties in the city, but they were called off after the BMC realized that it would be a time-consuming, expensive exercise.

HDFC Life Plans 120 cr Spend for Tech Edge

HDFC Life, one of India's leading private insurers, said it will spend . 120 crore over the next four years, as part of a technology-led business transformation initiative meant to help the company be more competitive and drive business growth.  The initiative is being driven by chief executive officer Amitabh Chaudhry, who in his last job headed the business process outsourcing arm of Infosys, and Subrat Mohanty, executive vice-president for technology, also a former Infosys executive. "It will serve as a competitive wake-up call for the industry," said Partha Iyengar, vice-president and distinguished analyst at technology researcher Gartner.  HDFC Life, a joint venture between the country's largest housing finance institution HDFC and UK's Standard Life, is counted among the top five private life insurers in the country.  The company plans to invest in data analytics, information security and replace older software applications with newer ones that will allow it to adapt quickly to changing regulatory, competitive and macro-economic environments.  "The transformation will touch every part of our business," said Chaudhry, who engaged Deliotte to make recommendations and select Tata Consultancy Services as a service provider. One of the business goals of the exercise is to improve customer acquisition and retention. In the life insurance business, the ability to retain customers for at least 8-10 years is crucial to profitability, especially as acquiring a customer is expensive. At the basic level, this couldmean sending reminders for policy renewals. But the software HDFC Life is implementing will allow for more pro-active triggers based on changes to the customer's life. There could be multiple triggers such as if a customer changes the nominee, it could imply the person is now married.

Exports rise on signs of recovery in US, EU Grow At 4.2%, Fastest Pace In 12 Months

New Delhi: Exports seem to be on a recovery path with shipments out of the country growing at their fastest pace in 12 months amid signs of improvement in Europe and the US. What will provide further comfort to the government is a comparatively healthier trade balance with the gap between exports and imports narrowing to around $15 billion in February from record levels of nearly $20 billion seen in recent months. 

    According to provisional data released by the commerce department on Monday, exports climbed 4.2% to $26.3 billion during February, compared to $25.2 billion a year ago. During the period, imports grew 2.6% to $41.2 billion as non-oil imports fell 3.6% to $26 billion. 
    There was, however, little respite from the rising burden of crude oil imports that climbed 15% to over $15 billion. Even gold imports rose over 15% despite the government taking steps to dampen the demand for the precious metal to manage the rising current account deficit. 
    The main reason for the widening current account deficit is the higher trade deficit as exports contracted over 4% to $266 billion during April-February 2012-13, while imports are up 0.3% at $448 billion. Imports have climbed due to demand for crude edible oil and petroleum as well as gold remaining steady amid falling exports. But the latest data may provide some respite to policymakers. 
    Other export sectors that have fared well include rice, oil meals, pharmaceutical and chemicals.

Telcos fined 2,800cr for issuing ‘fake’ SIMs

New Delhi: The department of telecom has slapped penalties of Rs 2,800 crore on major telecom companies after at least 19 lakh SIM cards were found to have been issued by them on fake identity papers.      Under pressure, these telecom majors have started shedding the flab of lakhs of SIM cards obtained with fake identity papers and have already deposited Rs 400 crore with the government against the penalties raised against them for failing to  adhere to the know your customer (KYC) guidelines. The case involves one of the biggest penalties slapped on telecom companies and pertains to the period between 2007 and 2012.      The hefty penalty was imposed after TOI ran a campaign between 2007 and 2009 against SIM cards being procured on fake identity documents, some of which were used by terrorists to trigger blasts. When the government and telecom companies were in a denial mode, TOI procured two SIMs in the name of the then home secretary and then Intelligence Bureau director without having to deposit any proof of their identity. The two connections, a post-dated and another prepaid, were activated by the telcos without checking the veracity of the persons in whose name the connections had been issued and the records submitted as proof. Sistema sole bidder, CDMA auction fetches just 3,639cr T he government managed to raise just Rs 3,639 crore—less than one-tenth of the projection—on Monday when 800 MHz airwaves used for CDMA operations were auctioned. However, the sole bidder, Sistema Shyam Teleservices, will pay Rs 2,013 crore (deducting the Rs 1,626 crore paid earlier) in 10 annual instalments only from March 2016. P 19 Telcos challenge penalty system T hough initially the penalty amount imposed by DoT was Rs 1,000 for each SIM card obtained on fake identity papers, after 2009 the government raised it to a maximum of Rs 50,000 when huge discrepancies were discovered during scrutiny of customer application forms (CAF) of these telcos.      The maximum penalty was imposed on those telecom operators whose accuracy rate of correct proof of identity and address (PIA) was less than 80% of the total CAF checked. The telecom companies have, however, contested the graded system of penalty and have instead sought the government to impose penalty based on the income tax slab and that too retrospectively. Doing away with the graded system of penalty may bring down the current demand to 1/3rd of the penalties imposed. A Telecom Disputes Settlement and Appellate Tribunal order has also gone in favour of telecom companies which are seeking lowering of penalty.